Final Project 2

A

SUMMER INTERNSHIP PROJECT REPORT

ON

STUDY OF KAPS PLANT&

FINANCIAL FUNCTIONING&

RATIO ANALYSIS

OF NPCIL & KAPS

SUBMITTED BY:

PRIYANKA.A.ZAVERIEnrollment No: 118120592013

(ID No: 11MBA23)

Guided By:Mr. VIJYENDRA GUPTA

MBA PROGRAMME(2011-2013)

THE MANDVI EDUCATION SOCIETY INSTITUTE OF ADMINISTRATION & COMPUTER STUDY

1

MANDVI

Contents

No. Subject Page No.

1. ACKNOWLEDGEMENT 3

2. INTRODUCTION 4

3. COMPANY PROFILE 7

4. INTRODUCTION OF KAPS 9

5. ORGANIZATION STRUCTURE 15

6. PRODUCT PROFILE 18

7. INFORMATION ABOUT PLANT 22

8. FINANCE DEPARTMENT 32

9. RETIO ANALYSIS 47

10. RATIO ANALYSIS BETWEEN KAPS & NPCIL 58

11. CONCLUSION 73

12 ANNEXURE 74

13 BIBLIOGRAPHY 79

2

ACKNOWLEDGEMENT

I am truly privileged that I got an opportunity to be trained in a reputed organization like KAPS (A unit

of NPCIL). The association with such a focused and growth oriented company has left a positive imprint

in my mind. Understanding the functionalities of this company helped me to develop a positive,

professional, and honest attitude towards my work.

I am extremely thankful to Mr. Arukn Kumar Mishra (DGM’s FINANCE), for giving me permission to

undergo summer Internship Training in KAPS. I am also thankful to Mr. Saket Patel ,Mr.Abdul

Mohseen Lohar and MR.Pragnesh Shah for extending their full support in Finance & Accounts

Department.

Finally, in this chain I would also be thankful to all officers and staff of Finance Department, whose

efforts contributed for successful completion of my project work.

Thank you,

Yours faithfully

Priyanka.A.Zaveri

3

CHAPTER-1INTRODUCTION

4

INDUSTRY OVERVIEW India’s power sector .

The Indian economy has been growing steadily in the range of 8- 9 & the recent past and is expected to

maintain its status as one of the fastest economies in the world with long term GDP growth estimated to

be around 9% . Driven by strong economic growth, energy consumption in India has been growing over

the last two decades. India is the world’s 5th largest producer of electricity. The total power generation in

the country during the year 2009-2010 was 772 Billion Units (Bus) registering a growth of around 6.6%.

The electricity supply is, however, insufficient to meet the demand. The prevailing shortages of 10.1%

(energy) and 13.3% (peak) and by the substantial section of the population who lacks electricity access

need to be addressed. The Integrated Energy Policy of the Government of India forecasts that the growth

of per capita electricity consumption in India’s is expected to rise about four times from 700 KWh to

2500KWh(Kilowatt-Hours) in the next 25 years.

OPPORTUNITIES IN GENERATION

As per Integrated Energy Policy, country’s energy requirement, considering 8% growth in GDP, will be

3880 BUs by 2031 -32 needing an installed capacity of 778 GWs(Gigawatt). The projected nuclear

power capacity by the year 2032 is at 63 GW.

NUCLEAR POWER A PREFERRED OPTION

Many countries are experiencing a nuclear renaissance after several years of no new builds. No capacity

addition of nuclear power is to be viewed in context of stagnant demand, utilization of the nuclear fleet

at higher capacity factors and plant life extension of the NPPs. A number of facts are now coming

together to promote revival of nuclear capacity addition globally. The concerns of energy security,

volatile and high prices of fossil fuels and their impact on climate change are causing Governments to

rethink their energy policies and diversify fuel mix.

5

NUCLEAR POWER IN INDIA

To utilize uranium and large thorium reserves in the country for electricity generation, India’s nuclear

power programme was envisaged as a three – stage programme with a close fuel cycle. The three stages

of the programme are:

Natural uranium fuelled Pressurized Heavy Water Reactors (PHWRs) in the first stage.

Fast Breeder Reactors (FBRs) utilizing plutonium based fuel extracted from the spent fuel of the first

stage, and

Advanced nuclear power systems for utilization of thorium.

NUCLEAR POWER CORPORATION OF INDIA LIMITED

Nuclear power corporation of INDIA limited has steered India’s nuclear power programme as a viable

supplement to fossil power and a possible answer to India’s growing energy demands in the long term

ever since NPCIL ‘s inception in 1987 .

Now as India enters a sustained growth of about 9%, NPCIL is poised for a quantum growth to cater to

India’s energy thirst through indigenous competence enhancement and global alliances.

6

CHAPTER-2COMPANY PROFILE

7

COMPANY PROFILE

ROLE of NPCIL:

In India, nuclear power generation commenced as a Government activity and it entered the commercial

domain in 1987 with the formation of the Nuclear Power Corporation of India Limited, a public sector

enterprise under the aegis of Department of Atomic Energy, Government of India.

NPCIL has attained maturity in the first stage of nuclear power programme. Today, NPCIL is unique in

having comprehensive capacity in the various facets of nuclear technology viz. site selection, design,

construction, commissioning, operation, & maintenance and life extension of nuclear power plants.

NPCIL MISSION

To develop Nuclear Power Technology land to Produce Nuclear Power as a safe environmentally viable

sources of electricity energy to meet the increasing electricity of country.

VISION

To set up 20000 MWe Nuclear Power capacity by the year 2020.

NPCIL OBJECTIVES

To maximization the power generation and profitability from nuclear [power station with a motto

of “Safety first and Production next “.

To increase nuclear power generation capacity in the country. Consistent with the available

resources in safe, economical and rapid manner in keeping with growth of energy demand in the

country.

To continue and strengthen QA activities relating to nuclear power program within the

organizational and those associated with it.

To continue and strength the public awareness programmers for enchasing and improving the

public perception of nuclear power in the country.

To continue land strength the environmental protection measure relating to nuclear power

generation.

To share appropriate technological skill and expertise at nation and international level.

8

CHAPTER -3INTRODUCTION OF KAPS

9

INTRODUCTION TO KAPS

Kakarapar Atomic Power Station (KAPS) is situated on the left bank of river Tapti in south Gujarat. It is

about 85Km from Surat and 15Km from Vyara on Surat Bhusaval railway line in Tapti district of

Gujarat state.

It is unit of Nuclear Power Corporation of India Limited (NPCIL), which is wholly owned undertaking

of Government of India under the administrative control of Department of Atomic Energy (DAE)

Government of India. The Mission is to develop nuclear power technology and produce in a safe –reliant

manner nuclear power as a safe environmentally being and an economically viable source of electric

energy to meet the growing electricity need of the country. NPCIL has its vision to have an install

nuclear power capacity of 20000MW (e) by the year 2020 AD.

KAPS has two –unit module with the capacity of 220 MW (e) each .Each unit consist of one reactor

building and one turbine building , a common service building and other common facility. Provision is

existing for extension by two more unit of same capacity. Both units are Pressurized Heavy Water

Reactor (PHWR). The reactor use heavy water as moderator and natural uranium as a fuel in a

sophisticated from, which is available in a large quantity in India. The plant is surrounded with greenery

and water pound. The financial approval has been obtained in July 1981, for the construction of the

Atomic Power Station. The Constructions of these two units are of Rs.1335 corers.

WHAT IS NUCLEAR ENERGY?

Nuclear energy is produced by controlled nuclear reactions. In a typical nuclear reactor, the energy

released from continuous splitting of atoms of the fuel is harnessedas heat in either gas or water ,

and is used to produce steam. The steam drives the turbines that produce electricity. Control rods

are used to ensure a controlled rate of the nuclear reactions.

10

NUCLEAR POWER PLANT IN INDIA

Except KAPS there are many nuclear power plants in India that are giving great contribution in

generating electricity with indigenous technology & in safe as well as accurate manner. The name,

location & reactor capacity are shown as under:

11

UNDER CONSTRUCTION

09. Kakrapar Atomic Power Station

No. 3&4

Anumala (Gujarat) 1*700MWe

10. RajasthanAtomic Power

Station(RAPS) 7&8

Rajasthan 2*220MWe

11. Kundankulam Atomic Power 1*1000MWe

12

SR

NO.

NAME LOCATION REACTOR

CAPACITY

01 Tarapur Atomic Power Station 1&2

3&4

Tarapur

(Thane)

Tarapur

(Thane)

1*160MWe

1*160MWe

1*540MWe

1*540MWe

02 Rajasthan Atomic Power Station 1, 2, & 4 (Kota)

(Rajasthan)

1#100MWe

1#200MWe

1#220MWe

1#220MWe

03 Madras Atomic Power Station 1& 2 Kalpakkam

(Chennai)

1*170MWe

1*170MWe

04 Narora Atomic Power Station 1 & 2 Bulandsahar

(U.P.)

1*220MWe

1*220Mwe

05 Kakrapar Atomic Power Station 1 & 2 Anumala

(Gujarat)

1*220MWe

1*220Mwe

06 Kaiga Generating Station 1, 2 & 3 Kaiga

(Karnataka)

1*220MWe

1*220Mwe

07 Kaiga Atomic Power Station no. 4 Kaiga

(Karnataka)

1*220Mwe

08 Rajasthan Atomic Power Station 5 & 6 Rawatbhata

(Rajasthan)

1*220MWe

1*220Mwe

Station 1 & 2 Tamilnadu 1*1000MWe

13

CHAPTER -4ORGANIZATION STRUCTURE

ORGANISATION STRUCTURE AT HEADQUARTERS

Chairman and Managing Director is the Chief Executive of the Company. Director (Technical),

Director (Finance), Director (Projects), Director (Operations) and Director (Human Resource)

represent the Company in the Board of Directors among the other part time Directors appointed by the

Government.

14

Directors, Senior Executive Directors and/or Executive Directors head the various corporate functional

directorates at Headquarters. Major corporate functional directorates are Technical, Engineering,

Projects, Operations, Human Resource, Finance, Contracts and Materials Management, Procurement,

Quality Assurance, Research and Development, Knowledge Management, Safety, Corporate Services,

Corporate Planning, Rehabilitation & Resettlement and Vigilance.

ORGANISATION STRUCTUR AT POWER STATION

Site Executive Director (More than three twin units) Site Director (Two to three twin units)

Station Director (Twin unit)

Chief Superintendent

MaintenanceSuperintendent

OperationSuperintendent

TechnicalServices

Superintendent

QualityAssurance

Superintendent

TrainingSuperintendent

Other functional Heads reporting to Unit HeadHuman

ResourceFinance and

AccountsContracts and Materials

ManagementMedical

Superintendent

ORGANISATION STRUCTURE AT POWER PROJECTS

A Power Project is normally headed by a Project Director. The Project Director is assisted by a Chief

Construction Engineer.Chief Engineers or Additional Chief Engineers head the various

functional Groups like Civil, Mechanical, Electrical, Erection,etc.In the advanced construction stage,

the Operation and Maintenance (O&M) organisation is also set up in parallel, for

ensuring smooth transition from the construction phase to the commissioning phase and then

to the O&M phase. The Human Resource, Finance and Contracts and Materials Management

Groups are headed by officers at the level of Additional General Manager or Deputy General Manager

in Projects.

15

16

CHAPTER -5PRODUCT PROFIL

PRODUCT PROFILE

1. NUMBER OF PRODUCT

There is only one product in this company and that is generation of electricity, which is produced

through uranium and heavy water.

17

The NPCIL cannot sale the electricity directly as they want. They have to give all the production

detail to the Central Government and distribute it as the government allocates it to different states.

2. Sales Volume (KAPS)

YEAR SALE (IN MUS)NET SALES (IN

CRORES)

1995 - 1996 490.730 101.80

1996 - 1997 270.471 56.83

1997 - 1998 1629.334 356.10

1998 - 1999 2814.474 583.91

1999 - 2000 1850.608 402.86

2000 - 2001 2556.538 668.35

2001 - 2002 3008.679 821.24

2002 - 2003 3111.214 852.53

2003 - 2004 3182.250 886.47

2004 - 2005 3301.340 928.17

2005 - 2006 2806.048 629.78

2006 - 2007 2177.700 478.40

2007 - 2008 2052.434 457.61

2008 - 2009 2136.261 423.61

2009 - 2010 1728.469 348.29

2010 - 2011 1003.267 205.20

2011 - 2012 885.060 189.34

TOTAL 35082.85 8470.23

18

3.RAW MATERIAl:

The raw – material that is used in generation of electricity is:

Uranium &Heavy Water.

1) Uranium:

The Uranium – 253 is one of the main raw materials, which is available in Bihar State at

‘Jadugoda’. It is sending for refinery in Hyderabad to enrich the Uranium.

2) Heavy Water:

Heavy water is also called D2O. It is a very costly input to produce electricity. It is used

instead of Simple Water [H2O], because H2O consume more neutrons and the D2O consumes fewer

neutrons and D2O not converted in to steam and its boiling point is higher than simple water.

These raw materials are provided by DAE [Department of Atomic Energy] to NPCIL.

4. GROWTH PROFILE

Presently the company is producing electricity with the unit 1 & 2. Now unit 3&4 are work in progress

so in near future the electricity will be produced through unit 3&4.

5. MAJOR CUSTOMER

There are total 8 major customer, all are listed out below:

1) Goa2) Madhya Pradesh (MPEB)3) Gujarat (GEB)4) Maharashtra (MSEB)5) Chhattishgarh (CSEB)6) Daman & Div (D&D)

19

7) Dadra Nagar Haveli (DNH) Heavy water board ,(Bombay)

20

CHAPTER -6 -6

INFORMATION ABOUT PLANTINFORMATION ABOUT PLANT

INFORMATION ABOUT PLANTINFORMATION ABOUT PLANT

1. PLANT LAYOUTPLANT LAYOUT

The layout of the plant consisting all major buildings and facilities is shown below:

21

1. Reactor Building-1&2. 2. Turbine Building-1&2.

3. Purification Building. 4. Service Building.

5. Reactor Auxiliary Building. 6. CW Pump House.

7. Natural Draught Cooling Tower-1& 8. Induced Draught Cooling Tower-1&2.

9. Raw Water Pump House. 10. Pretreatment Plant.

11. Demineraliser Plant. 12. 220 KV Switchyard.

13. Waste Management Plant. 14. Solid Waste Burial Ground

15. Central Alarm Station. 16. Heavy Water Upgrading Plant.

17. Stack. 18. Canteen Building.

19. Administrative Building. 20. Ware House.

Simplified Flow DiagramSimplified Flow Diagram

A conceptual flow diagram of all reactor and turbine-generator system in KAPS is shown below. TheA conceptual flow diagram of all reactor and turbine-generator system in KAPS is shown below. The

major systems are:major systems are:

Primary heat transfer transport systemPrimary heat transfer transport system

22

Moderator systemModerator system

Feed water systemFeed water system

Steam systemSteam system

Condenser cooling water systemCondenser cooling water system

Generator and switchyard Generator and switchyard

CALANDRIACALANDRIA

The photograph of one site end of Calandria is shown below:

23

The reactor vessel or Calandria is the main component of the reactor where heat is produced for

power generation. This contains the Coolant Channel assembly and Fuel Bundles. The Calandria

is filled with heavy water as Moderator. Calandria, integral with the End Shields, is a horizontal

Cylindrical Shell of 6m diameter, 5m long, containing 306 nos. horizontal tubes. The Calandria

is housed in Calandria Vault. The Calandria vault is filled with light water. This light water is

continuously circulated to remove the heat.

The Calandria tubes and the coolant tubes are made of Zirconium Niobium alloy as improved

material. Control and Shutdown of the reactor is achieved by reactivity control rods through

automatic operation.

FUELFUEL

All 306 coolant channels in the Calandria are identical. The fuel is in the form of pellets made out

of Sintered Natural Uranium Oxide contained in Zircoloy Sheath forming cylindrical elements,

24

called pencil. 19 such pencils form a fuel bundle. Each coolant channel houses 12 fuel bundles. On

power refueling system is the specialty of PHWR. Fuel is fed and discharged from both ends of the

reactor by remotely operated and computer controlled fuelling machines.

COOLING TOWER

25

Main cooling system for the station is a closed loop, which comprises of condenser, Natural Draught

Cooling Tower (NDCT), Circulating Water pumps and associated large diameter buried piping.

Approximately two third of the heat energy generated in the reactor is dissipated to atmosphere through

the NDCTs.

GENERATING SYSTEM

1 GENERATORS:

26

Power is generated at 16.5kv by two turbo generators each rated for 237.7 MW (264KV, 0.9

lag pf). The rating of the generator is based on the standard BHEL m/c available in the country. The

generator stator is water cooled. The rotor is hydrogen cooled while stator is water cooled.

The generator reactive power capabilities are as follows:

maximum line charging - 74 MVAR

maximum inductive power - 203 MVAR

2 BUS DUCTS:

Each generator is connected to its own generator transformer through isolated phase bus ducts. This unit

connection arrangement affords a maximum reliabilities and availability of the unit. The isolated phase

bus duct connection reduces the chances of phase to phase and phase to ground faults in the 16.5kv

system .Tap off connection are provided in the bus duct for the following:

unit transformer

static excitation system transformer

Generator potential transformer and surge protection.

The main bus ducts are rated for 10,000 amperes and the tap off bus ducts are rated for 2000

amperes. Continuous type of isolated phase bus ducts has been adopted to minimize inductive

heating of supporting structures and associated losses.

3.SWITCHYARD3.SWITCHYARD

27

3.13.1 Switchyard Location:Switchyard Location:

The switchyard is located on the northern side of the turbine building between grids 91K and

L39 and 34. The startup transformers are located inside the switchyard. The generator

transformers are located outside the turbine building on the northern side. These transformers are

28

connected to the switchyard by 220KV overhead lines passing over the road between turbine

building and switchyard. The startup transformers are connected to the 6.6KV station switchgear

(located inside turbine building) through FRLS cables.

3.23.2 Switching Scheme:Switching Scheme:

In all there are eight 220KV lines, two generator circuits and two startup transformer circuits.

Considering the number of circuits involved, two main bus schemes have been adopted for this

station. The scheme has following advantages.

Any element can be connected to any of the two main bus bars at any time.

Any one main bus can be taken out for maintenance by transferring all elements to the

other main bus.

In case of a bus fault, only elements connected to that bus will trip. These elements can

be immediately restored to the other healthy main bus.

3.3 Bay:3.3 Bay:

There are in all thirteen bays consisting of eight line bays, two generator bays, two startup transformer

bays and one bus coupler bay. The eight lines interconnect KAPP to 220KV grid, at HALDARVA,

VAPI, VAV (double circuit), UKAI and VAV (single circuits).The main bus bars are made of IPS

aluminum tubes.

3.3.1 The Circuit Breaker:3.3.1 The Circuit Breaker:

29

The circuit breakers are of SF6 type, manufactured by M/s CGL. The circuit breakers are of single pole

type. The control scheme of line circuit breakers has provision for 3 pole tripping and reclosure. The

reclosing scheme has also provision for reclosures on dead line or reclosing with synchronizing check

features.

There is a unitized compressed air system for feeding air to the circuit breakers. The compressors are

located adjacent to the breakers in the switchyard. The air piping is made of copper tubes and is run

inside cable trenches in the switchyard.

Systems of two adjacent breakers are interconnected to maintain air supply in the event of failure of the

compressor of one bay.

30

CHAPTER -7

FINANCE DEPARTMENT

FINANCE DEPARTMENT: Finance is the most important department in early organization. It is always interlink with all other

department in the organization for doing any work. It can be relationship with administration, personnel,

production, C&MM, and other. It can be relatively other department directly or indirectly. It involves

the acquisition of fund and use of these funds.

31

In the HRD section many activities are done like promotion, recruitment, transfer, retirement, and other

activities are required of fund and this requirements are fulfill by finance department. Finance

department also pays payment of wages and salaries. The face department is one of the useful criteria to

HRD section many activities.

In production section, many activities are done at automatic. In that more machinery, equipment and

new technology are used, this all are very expensive. The purchasing of all machinery and equipments

are only possible by finance department. The finance is main part of production system.

In C&MM department all material are purchase and store system connected with finance and account

section. Finance is helpful to know the opening stock and closing stock of material and preparation of

B/S of material management. It records material received, material issue, and credit system.

In the safety, transportation, maintenance, fire, health, civil and training section are also required finance

for done its activities. Finance also related with labour welfare activities. The funds are requiring for

labour service and other facilities provided to labour. That means in the KAPS finance department very

importantly affected with whole organization system.

SUB DEPARTMENT

1) PURCHASE FUNCTION

Purchase group is entrusted with the prime responsibility of procurement. Its strategy to procure the

material and services are dealt with strict compliances of fundamental principles. CMM is engaged in

the following function:

SUPPLIER -------CMM---------PURCHASE

STEPS FROM RECEIPT OF INDENT TO RELEASE OF PURCHASE ORDER:

(1) RECEIPT OF INDENT:

32

a. Indent should be in a prescribed format i.e. CMM-01 and indenter Should be an officer not

below the Rank of SO/B or Asst. Manager.

b. Indent should be approved by Competent Authority as per Part A of HQI 2007 (Rev-1)

c. Through site planning section, budget group and stores to ascertain availability of the

indented material as per guideline given in A-4 of HQI 2007.

d. Fulfilling all the pre-requisites of clauses A-1 to A-15 of HQI 2007 i.e

1. Breakup of estimated cost of Previous PO reference, A-6

2. Desired delivery schedule giving sufficient processing time, A-7

3. Necessary justification if mode of tendering proposed by intender.

4. Specific note to obtain performance Bond A-11

e. Complete in all respect i.e. detailed descriptions, drawing, technical specification, quantity,

installation & commissioning requirement, special condition, if any, FIM and its value, test

certificate, place of delivery etc.

f. Entry/ Registration in Indented Register of Purchase group.

(2) SELECTION OF MODE OF PURCHASE (MOP):

CHECKS BEFORE SELECTION OF MOP

A) Possibility of repeat order (B-18 of HQI-2007 )

B) Previous PO reference & its scrutiny to check estimated cost, cost of supply, specification

etc.

Mode of Purchase (MOP) is to be decided upon the estimated cost, urgency, /desired delivery

schedule, nature of item/s etc as per various provisions given under Part-B of HQI-2007.

33

(3) Preparation of tender sets and fixing of due date:

1) Based on the nature of tender due date can be fixed. However , normal time period as given

in D-3 of HQI-2007 shall be considered as given below :

Public Tender (PT) = 45 days

Limited Tender (LT) = 21 days

Single Tender (ST) = 15 days

Time can be extended or reduced as per powers given by Headquarter.

(4) OPENING OF TENDER:

1) As per provisions are made and in presence of finance representatives.

2) Scrutiny of offers received whether correction & erasure are attested by

both the agencies, unsigned quotation etc.

3) Follow proper procedure for opening of tender & maintenance of its

recorders i.e. unsolicited offers etc.

(5) PREPARATION OF COMPARATIVE STATEMENT (CST):

1. Shows comparative status of offers, evaluate offers for its comparativeness.

2. Uniform element shall be taken to put all the offers on an equal platform.

3. It contains:

a) Specification quantity unit price discount basis of price & loading of all

commercial elements i.e. Packing & forwarding Freight Insurance etc.

b) Statutory Levies

- Excise Duty

- Sales Duty

- Custom Duty

34

- Octroi

- Service Tax

c) Validity and delivery period

d) Payment terms – Loading of interest for advance payment.

e) Regret- Excluded items.

f) Deviations in specification- specific remark, brand name, model no. etc.

g) Price variation formula with ceiling.

h) Testing Charge erection and commissioning charge & additional monetary

liabilities e.g. Agency Commission etc.

4. Signed by appropriate authority and forwarding to indenting section for

recommendation.

(6) Processing & Scrutiny of purchase recommendation (PR):

1. Financial concurrence and approval of competent authority.

2. Necessary budget provision availability.

3. Validity of offer-efforts shall be made for re-validation of accepted offer.

4. Price negotiation/technical negotiation, if any.

5. Justification for reasonability of price.

(7) Preparation of purchase order :

1. Depending upon the value – in respective Forms- CMM-45, CMM-23, CMM-64 and in

accordance with terms and conditions of GCCs-11/22/12 etc.

2. Complete in all respect- no ambiguity, contains- specification, description, quantity, unit

rare, total value, commercial terms & conditions, payment terms and mode of payment,

basis of price, place of delivery, delivery schedule, dispatch instruction, insurance etc.

3. Comprehensive from all angles i.e. commercial, legal, and financial.

35

4. Pre-audited when PR value exceeds margin, pre-auditing is to be done irrespective of

individual PO value.

5. Issue & signature by appropriate authorities as mentioned.

6. Release of PO after allotting PO no..

(8) Post contract follow up :

1. Receipt of clear order acceptance.

2. Follow up/raising of proposal for amendments sought by the suppliers involving various

deviations.

3. Approval of QS plan, samples etc.

4. Issue of free issue material-instruction to stores & suppliers.

5. Remainders for effecting supply (follow up).

6. Receipt & acceptance of Material.

7. Preparation of material Receipt Voucher (MRV).

8. Obtain payment details.

9. Close the case file.

LEAD TIME:

Lead-time is the difference between placement of order and receipt of delivery. There is two types of

lead-times are included in CMM department.

They are;

1. Administration Lead-time &

2. Supplier Lead-time

1) ADMINISTRATION LEAD-TIME:

36

Anybody require any kind material they make an order. In which they include quantity, size,

item no., etc. Then they send it to the material manager to pass the order legally. And the

manager signs the order letter and makes order. All this procedure contains time is called

Administration Lead-time.

2) SUPPLIER LEAD-TIME:

After ordering by particular company, the company who provides material will accept the

order. Then they called the company’s person who placed the order, to check whether the

material is as per the order and requirement. After the material is being packed then it is

transported to the company. The person again check the material if any problem like as per

requirement, broken during transport is rejected and when it will replace or after payment

when actually taking in use. All these activities contain time is called Supplier Lead-time.

WORK & ORDER

CONTARCTS:-

A contract is an agreement enforceable by law (section 2w of the India contract act 1872)

When two or more persons have a common intention communicated to each other to create some

obligation between them, there is said to be an agreement, which is enforceable by law, is called contract

work.

Works are classified as:

A) Original works

B) Repair or Maintenance work

37

PUBLICITY OF TENDER

Tender must be invited in the most open and public manner possible, whether of advertisement in the

press or by notice in English/Hindi and the vernacular language of the district, posted in public process.

Tender invited through the following modes:

Public tender (PT) – where estimated cost of work is above Rs.15Lakhs a brief

advertisement inviting tenders (from NPCIL) should invariably be inserted in the press.

Limited tender(LT) – where estimated cost of work is estimated up to Rs.15 lakhs and in

the case where estimated cost is above 15 lakhs but

1). Sources are known

2). Time does not permit to go for public tenders

3). Issue of public tenders is not in organization interest

The limited tender can be called. List of parties to whom it is to be issued should be get approved

from competent authority before issue of tender. Recommended parties should be technically and

financially competent to take up to work if awarded.

Single tender (ST):- when sources are limited to one party for specialized type of work.

Without call of tender/nominations: - when necessary of work and time order does not

permit the call of tender.

Time limit for the publicity of tender The following time limits between the state of call for tenders and the date of opening of the tender

to be adhered to any reduction in time shall be only in rare cases and need to be approved by

competent authority.

Estimated cost of work Time limit

38

A. Up to Rs10 lakhs 10 days

B. Above Rs 10 lakhs and upto

50 lakhs 15 days

c. More than Rs 50 lakhs 21days

Sales of tenders should be stopped 24 hours before the opening of the tenders for the works ratings up to

Rs.2lakhs and 2 days before in the case of works costing above Rs.2lakhs

Every tender document issued must contain the following information at the time of its issue

Name of the contractor

The date of the application by tender, date of receipt of application by the corporation

Date of issue of tender paper

Last date of submission of tender

Tender for NPCIL works can be issued to contractors registered in NPCIL in appropriate

classes. However in case where no contractor is registered with NPCIL comes forward for the

tender or where such registration do not exist, the contractors registered with CPW, P&T,

railways, state bank etc. in the appropriate classes may be considered

Tenders document cost

Sr.

No.Estimated cost of work Cost of tender

a. Up to Rs.1lakh Rs.150.00

b. Between Rs.1lakh to Rs.50lakh Rs.500.00

39

c. More than Rs.50lakh but up to Rs.2crores Rs.1000.00

d. More than 2crores Rs.1500.00

EARNEST MONEY DEPOSIT

Paid by each tenders to corporation to ensure that a tenderer does not refuse to execute the work after it

has been awarded to him. In case the tenderer fails to commence the work awarded to him. The earnest

money is absolutely forfeited to the corporation the EMD is to be based on the estimated cost of work.

Tender’s not accompanied by EMD shall be rejected.

SALARIES

The meaning of the term ‘salary’ for the purposes of income tax is much wider than what is normally

understood. Every payment made by an employer to his employees for service rendered would

chargeable to tax as income from salaries. The term ‘salary’ for the purpose of income tax Act will

include both monetary payments (e.g. basic salary, bonus, commission, allowances etc.) as well as non-

monetary facilities (e.g. housing accommodation, medical facility, interest free loans etc.)

a. EMPLOYER-EMPLOYEE RELATIONSHIP

b. FULL-TIME OR PART-TIME EMPLOYMENT

c. FOREGOING OF SALARY

d. SURRENDER OF SALARY

e. SALARY PAID TAX-FREE

f. VOLUNTARY PAYMENTS

DEFINITION OF SALARY

The term ‘salary’ has been defined differently for different purpose in the ACT. The definition as

to what constitutes salary is very wide. It is inclusive definition and includes monetary as well as

non- monetary items. There are different definitions of ‘salary’ say for calculating exemption in

respect of gratuity, house rent allowance etc.

40

Salary’ u/s 17(1) includes the following;

Wages

Any annuity or pension

Any gratuity

Any fees, commission, perquisite or profits in lieu of or in addition to any salary or

wages

Any advance of salary

Any payment received in respect of any period of leave not availed by him i.e. leave

salary or leave encashment

The portion of the annual accretion in any previous year to the balance at the credit of

an employee participating in recognized provident fund to the extent it is taxable

Transferred balance in recognized provident fund to the extent it is taxable

The contribution made by the Central Government in the previous year to the account

of an employee under a pension scheme referred to in section 80CCD

BASIS OF CHARGE

1. Section 15 of the Act deals with the basis of charge. Salary is chargeable to tax either

on ‘due’ or on ‘receipt’ basis whichever is earlier.

2. However, where any salary paid in advance, is assessed in the year of payment, it

cannot be subsequently brought to tax in the year in which it becomes due

3. If the salary paid in arrears has already been assessed on due basis, the same cannot

be taxed again when it is paid

PLACES OF ACCRUAL OF SALARY

Under the section 9(1) (ii), salary earned in India is deemed to accrue or arise in India even if it is paid

outside India or it is paid or payable after the contract of employment in India comes at an end.

PROFIT IN LIEU OF SALARY

41

It includes the following:(i) The amount of any compensation due to or received

by an assessee from his employer or former employer

at or in connection with the termination of his

employment

(ii) The amount of any compensation due to or received

by an assessee from his employer or former employer

at or in connection with the modification of the terms

and conditions of employment. Usually such

compensation is treated as a capital receipt.

ADVANCE SALARY

Advance salary is taxable when it is received by the employee irrespective of the fact

whether it is due or not. It may so happen that when advance salary is included and

charged in a particular previous year, the rate of tax at which the employee is assessed

may be higher than the normal rate of tax to which he would have been assessed. Section

89(1) read with Rule 21A provides for relief in these types of cases.

LOAN OR ADVANCE AGAINST SALARY

Loan is different from salary. When an employee takes a loan from his employer, which is repayable in

certain specified installments, the loan amount cannot be brought to the tax as salary of the employee.

42

Similarly, advance against salary is different from advance salary. It is an advance taken by the

employee from the employer. This advance is generally adjusted with his salary over as specified time

period. It cannot be taxed as salary.

SALARY ARREARS

Salary arrears must be charged on due basis. However, there are circumstances when it may not be

possible to bring the same to charge on due basis i.e. if the pay commission is appointed by the central

government and it recommends revision of salaries if employees, the arrears received in that connection

will be charged on receipt basis. Here, also relief under section 89(1) read with Rule 21A is available.

ANNUITY

1. As per the definition, ‘annuity’ is treated as salary. Annuity is a sum payable in respect of a

particular year. It is a yearly grant. If a person some money entiting him to series of equal annual

sums, such annual sums are annuities in the hands of the investor.

2. Annuity received by a present employer is to be taxed as salary. It does not matter whether it is

paid in pursuance of a contractual obligation or voluntary.

3. Annuity received from a past employer is taxable as profit in lieu of salary.

4. Annuity received from person other than an employer is taxable as” income from other sources”.

GRATUITY [SECTION (10)]

Gratuity is a voluntary payment made by an employer in appreciation of the services rendered by the

employee. Now –a-day’s gratuity has become a normal payment applicable to all employees. In fact,

payment of gratuity act, 1972 is a statutory recognition of the concept of gratuity. Almost all employers

enter into an agreement with employees to pay gratuity.

PROVIDENT FUND

43

Provident fund scheme is a scheme intended to give substantial benefits to an employee at the time of

his retirement. Under the scheme, a specified sum is deducted from the salary of the employee as his

contribution towards the fund. The employer also generally contributes the same amount out of his

pocket, to the fund. The contribution of the employer and the employee are invested in approved

securities. Interest earned thereon is also credited to the account of the employee. Thus, the credit

balance in a provident fund account of an employee consists of the following:

Employee’s contribution

Interest on employee’s contribution

Employer’s contribution

Interest on employer’s contribution

The accumulated balance is paid to the employee at the time of the retirement or resignation. In the case

of death of the employee, the same is paid to his legal heirs.

There are four of provident funds:

Statutory provident fund (SPF)

Recognized provident fund (RPF)

Unrecognized provident fund (UPF)

Public provident fund (PPF)

ALLOWANCES

Different types of allowances are given to employees by their employers. Generally, allowances are

given to employees to meet some particular requirement like house rent, expenses on uniform,

conveyance etc. under the Income-tax Act; allowance is taxable on due or receipt basis, whichever is

earlier.

PERQUISITE

44

A perquisite is causal emolument, fee or profit attached to an office or position in addition to the salary

or wages. In other words, perquisites are the benefits in addition to normal salary to which the employee

has a right by virtue of his employment.

SOURCES OF FUNDS:

The KAPS unit gets funds from the corporate office Mumbai. It also generates profit, which is

one of the major sources of fund. No other source of funds are there with KAPS because most of the

decisions are taken and operated from the head office only which is at Mumbai.

CAPITAL BUDGETING:

Capital budgeting is done in the initial stage when KAPS was built and newly started. When

generation of electricity is disrupted KAPS unit has to bear huge machinery, the first attempt is made to

get the machinery at the earliest so that the working of unit goes on.

WORKING CAPITAL MANAGEMENT:

Managing working capital is an important task because it deals with day-to-day transactions for

which necessary funds are required and must be there maintained with the unit. KAPS prepares well in

advance one weeks gross requirement of money to meet all the monitory transactions.

45

CHAPTER -8RATIO ANALYSIS

RATIO ANALYSIS

46

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two

mathematical expressions ’’ and as “the relationship between two or more things.”

Ratio helps to summaries large quantities of financial data and to make qualitative judgment about the

firm’s financial performance.

Objective of the study:

The objectives of analysis of financial statements have their genesis in the objectives of financial

statements. We have been learning throughout this text that the objective of financial is to provide

information about the financial position, performance, and cash flows of a company. Based on this

information, objective of analyzing then is to evaluate:

The adequacy or otherwise of the profits earned by the company.

The adequacy or otherwise of its financial strength.

Its ability to generate enough cash and cash equivalents and the timing and certainty of

their generation, and

The future growth outlook of the company.

KAKRAPAR ATOMIC POWER STATION PERFOMANCE ANALYSIS

LIQUIDITY RATIOS:

It measures the ability of the firm to meet its current obligations (liabilities). It is very necessary to

maintain a proper balance between high liquidity and liquidity.

1) CURRENT RATIO: It measures the firm’s short-term solvency. It indicates the availability of current

assets in rupees for every one rupee of current liability.

Current ratio = Current assets

47

Current liabilities

YEAR CURRENT ASSET CURRENT LIABILITIES

RATIO

2010-11 690436847 437766889 1.572011-12 884475764 281959545 3.14

CURRENT RATIO

2011 20120

0.5

1

1.5

2

2.5

3

3.5

1.58

3.14

RATI

O

INTERPRETATION:

The ideal ratio is 2:1. As the current ratio has been increased in the amount of the current liabilities. In

2010-11 the current ratio was too low which showed firm was inefficient to meet its obligation and later

in 2011-12 the amount of current asset has gradually increased with the decreased in current liabilities

which display firm’s short-term solvency has been increased.

2) QUICK RATIO: Generally, a quick ratio of 1:1 is considered to represent a satisfactory current

financial condition. It is a more penetrating test of liquidity than the current ratio.

48

Quick ratio = Current Assets – (Inventories+prepaid expense)

Current Liabilities – Bank Overdraft

YEAR CA - INVENTORIES

CURRENT LIABILITIES

RATIO

2010-11 337587291 437766889 0.772011-12 508247627 281959545 1.80

2010-11 2011-120

0.5

1

1.5

2

0.770000000000005

1.79

QUICK RATIO

YEARS

RATI

O

INTERPRETATION: There is increase in quick ratio, which is show, the sufficient current assets to meet its obligation

because its quick assets are higher.

TURNOVER RATIO

3) FIXED ASSETS TURNOVER RATIO: The ratio shows the efficiency of the assets.

49

The efficiency use of assets will generate greater sales per capital invested in all the assets of

a concern. The inefficiency use of the asset will result in low sales and under utilization of

the available capacity.

Fixed Assets Turnover Ratio = Net Sales

Net Fixed Assets

YEAR NET SALES NET FIXED ASSETS

RATIO

2010-11 2057138796 3063966146 0.67132009-10 1893613205 2819339050 0.6716

2011 20120

0.2

0.4

0.6

0.80.700000000

0000010.700000000

000001

FIXED ASSETS TURN OVER RATIO

YEARS

RATI

O

INTERPRETATION:

In 2010 – 11 fixed assets, turnover ratio is 0.70 and in 2011– 12, it same to 0.70 means due to the

closure of the first unit, the utilization of fixed assets was not possible to be proper.

4) WORKING CAPITAL TURNOVER RATIO:

This ratio shows the number of times working capital is turned over in stated period. The

higher the ratio shows low investment in working capital and the greater are the profits.

50

Working Capital Turnover Ratio = Net Sales

Net Working Capital

YEAR NET SALES NET WORKING CAPITAL

RATIO

2010-11 2057138796 252669958 8.14

2011-12 1893613205 602516219 3.14

2011 20120

2

4

6

8

108.14

3.14

WORKING CAPITAL TURNOVER RATIO

YEARS

RATI

O

INTERPRETATION:

In 2011, the ratio was 8.14 and it decreased in 2012 is 3.14, which show the use of more working

capital in 2012 as compare to 2011 due to maintenance of first plant.

5) DEBTORS’ TURNOVER RATIO: It indicates the number of times on the average the receivable is turnover in each

year. The higher the value of ratio, the more is the efficient management of debtors. It

measures the accounts receivables in terms of number of days of credit sales during a

particular period.

51

Debtors Turnover Ratio = Net Credit Sales

Average Debtors

365

Collection period= ------------------------------

Debtor turn over ratio

DEBTORS TURNOVER COLLECTION PERIOD05

1015202530354045

8.87

41

13.99

26

DEBTORS TURNOVER RATIO

TIM

ES &

DA

YS

INTERPRETATION:

In 2011 Debtors turnover ratio and collection period was respectively 8.87 & 41 days and it

is 13.99 and 26 days in 2012, which show the efficient receivable management.

6) INVENTORY TURNOVER RATIO:

It denotes the speed at which the inventory will be converted into Sales. When all

other factors remain constant, greater the turnover of inventory more will be efficiency of its

management. Higher the ratio show finished stock is rapidly turned – over.

Inventory Turnover Ratio = Cost of Goods Sold

Average Inventory

52

2011 20123.1

3.153.2

3.253.3

3.353.4

3.18

3.34

INVENTORY TURNOVER RATIO

YEARS

TIM

ES

INTERPRETATION:

In 2011 Inventory turnover ratio was 3.18 and it increase in 2012 which is 3.34 which show

fast inventory convert into Sales and also more inventory require like spare parts for maintenance of

plant due to closer of 1st plant.

PROFITABILITY RATIOS:

It is calculated to measure the overall efficiency of the company. Profit is the ultimate output of

the company, and it will have no future if it fails to make a sufficient profit therefore the financial

manager should continuously evaluate the efficiency of the company in terms of profit.

7) GROSS PROFIT RATIO:

This ratio show gross margin on sale, higher the ratio show low cost of production

and vice – versa.

Gross Profit Ratio = Gross Profit * 100

Net Sales

Gross Profit = Sales – material cost

53

YEAR EBIT SALES RATIO2010-11 116205106 20571328796 0.05652011-12 283990873 1893613205 0.1499

2011 20120.00%

10.00%20.00%30.00%40.00%50.00%60.00%

47.93%

35.70%

GROSS PROFIT RATIO

YEARS

PERC

ENTA

GE

INTERPRETATION:

The ratio above shows the decrease in the gross profit since the ratio has decreased from 47.93%

to 35.71% in 2011 – 12. A low gross Profit margin show a higher cost of production due to the 1st plant

closer and maintenance of plant.

8) EXPENSE RATIO:

This ratio shows the proportion of expenses to the sales. The lower ratio shows low

expenses and more profit and vice – versa.

Expense Ratio = Expenses * 100

Net Sales

54

2011 2012

-120.00%-118.00%-116.00%-114.00%-112.00%-110.00%-108.00%-106.00%-104.00%

-110%

-119%

EXPENSES RATIO

PERC

ENTA

GE

INTERPRETATION:

In both the years, 2011 and 2012 expenses are more than sales due to the closer of 1st plant and

maintenance. In 2010 – 11 the ratio was 110.25% and it increased 2011 – 12 is 118.96% which show the

increase expenses.

9) SALES GENERATION:

This ratio show sales generation to the salaries & wages and show efficiency of

the employees. Higher ratio is good for company.

Sales Generation = Salaries &wages * 100

Net sales

55

2011 20120

0.1

0.2

0.3

0.430.48%

22.39%

SALES GENERATION RATIO

YEARSPE

RCEN

TAG

E

INTERPRETATION:

In 2010-11 sales generation was 30.48% and it decrease in 2011-12 is 22.39%, which shows

increase efficiency of the employees and also show high sale generation to salaries & wages.

56

CHAPTER-9RATIO ANALYSIS BETWEEN KAPS

& NPCIL

57

RATIO ANALYSIS BETWEEN KAPS & NPCIL

(Rs. In Lakhs)BALANCE SHEET of NPCILas at March 31, 2012

Schedule

As at

March 31,

2012 (Rs.)

As at

March 31,

2011(Rs.)

1.SOURCES OF FUNDS

1.shareholder’s funds

a)share capital 1 1014533.27 1014533.27

b)Reserves&surplus 2 1284062.60 1249878.17

2.Loan funds

a)secured loans 3 918720.00 656300.00

b)unsecured loans 4 627470.17 745621.61

1546190.17 1401921.61

3.Deferred Tax Liability 184628.67 178665.69

Less:deferred Tax Recoverable 184628.67 0.00 178665.69

TOTAL 3844786.04 3666333.05

II.APPLICATION OF FUNDS

1.Fixed Assets 5 1923057.97 1675855.23

a)Gross Block

Less:Depreciation

Net Block

6

680362.92

1242695.05

604026.88

1071828.35

b)capital Work in progress 7 1611243.65 1735960.55

2853938.70 2807788.90

2.Investments 7 241277.81 273262.64

3.Heavy Water Lease Charges

Recoverable

41209.94 18348.90

4.Current Assets, Loans and advance 8

58

a)Inventories

b)Sundry Debtors

c)Cash and Bank Balances

d)Other Current Assets

e)Loans and Advances

38877.10

50348.96

744913.13

40296.90

58845.37

37813.72

50655.97

515512.65

40102.44

46681.06

933281.46 690765.84

Less:current Liabilities and provisions

a)Liabilities

b)provisions9

180949.71

43972.16

93506.16

30327.07

224921.87 123833.23

Net Current Assets 708359.59 566932.61

“significant Accounting policies &

notes on Accounts”schedules 1 to 16

form integral part of accounts

16

Total 3844786.04 3666333.05

(Rs. In Lakhs)

59

PROFIT & LOSS ACCOUNT

For the year ended March 31, 2012

Schedule For the year

ended

March31,2012

For the year

ended

march

31,201209

INCOME

Sales:

Electricity Energy

Other Income

10

380681.76

67252.97

301055.51

77103.24

Total 447934.73 378158.75

EXPENDITURE

Fuel &Heavy Water

Operation and maintenance

Expenses

Employee’s remuneration and

benefits

Administration and other

expenses

Interest

On bond & term loan

On foreign loans

Less: Transferred to

expenditure during construction

period (sch.6A)

Depreciation

11

12

13

14

48578.27

21645.01

70223.28

26120.25

141767.09

30685.69

66182.99

24270.75

44103.03

72107.60

105503.12

28892.00

64259.45

20325.56

53506.12

26309.53

79815.65

30937.38

48878.27

70608.52

Total Expenditure 379117.15 338466.92

60

Profit For the Year

Prior period Adjustments (Net) 15

68817.58

21411.85

39691.83

(8385.41)

PROFIT BEFORE TAX

Provision for:

Income tax

Current Tax

Earlier Year Tax

Fringe Benefit Tax

Current Tax

Earlier Year Tax

Wealth Tax

Current Tax

Earlier Year Tax

Provision for Deferred Tax

Less: Deferred Tax Recoverable

5706.00

0.00

-

-

42.00

16.40

5962.98

5962.98

5706.00

-

58.40

0.00

47405.73

5764.40

48077.24

3291.36

0.00

3291.36

585.05

23.38

608.43

26.00

23.05

49.05

8399.89

8399.89

PROFIT AFTER TAX

Balance Brought forward from

previous year

Balance available for

appropriations

41641.33

98064.65

139705.98

44128.40

79424.67

123553.07

APPROPRIATIONS:

Interim dividend paid

Tax on interim dividend paid

Proposed Dividend for the year

Tax on proposed Dividend

Transfer to General Reserve

15000.00

2549.25

0.00

0.00

10000.00

10000.00

1699.51

3238.52

550.39

10000.00

61

Balance carried to Balance

sheet

“significant Accounting policies

& notes on accounts”

Schedules 1 to 16 from integral

part of accounts

16

112156.73 98064.65

Total 139705.98 123553.07

EARNING PER SHARE

(EPS) – BASIC & DILUTED,

(FV of Rs.1000 each) (Amount

in Rs.)

41.04 43.50

LIQUIDITY RATIOS:

It measures the ability of the firm to meet its current obligations (liabilities). It is very necessary to

maintain a proper balance between high liquidity and liquidity.

1) CURRENT RATIO:

Current ratio =Current assets

Current liabilities

62

KAPS NPCIL0

0.51

1.52

2.53

3.54

4.5

CURRENT RATIO

INERPRETATION:

In 2012 Current ratio of KAPS is 3.14 and NPCIL is 4.15 which show Current

position of KAPS is better than NPCIL because Current assets of NPCIL is more than required which

show idle Capital in Company and KAPS Current ratio is near standard ratio.

2) QUICK RATIO

Quick ratio= current Assets–(Inventories +prepaid)

Current liabilities – bank overdraft

KAPS NPCIL012345

QUICK RATIO

COMPANY NAME

RATI

O

63

INTERPRETATION:

In 2012 Quick assets of KAPS is less than Current Liabilities, which show inefficiency

to meet its Current liabilities and NPCIL Quick assets are more than its Current liabilities, which show

timely payment to creditors, but here Quick ratio is 3.98 which show idle capital in company.

TURNOVER RATIO

3) Capital Turnover Ratio:

Net Sales

= ----------------------

Capital employed

Capital employed =Fixed assets + Current assets -Current liabilities

KAPS NPCIL0

0.2

0.4

0.6

0.8

CAPITAL TURNOVER RATIO

COMPANY NAME

RATI

O

64

INTERPRETATION:

Here, Capital Turnover ratio of NPCIL is higher than KAPS and it is respectively 0.57 and 0.73, which

show low sales and profit of KAPS compare to NPCIL.

4) Fixed Assets Turnover Ratio:

Net Sales

= ----------------------

Net fixed assets

KAPS NPCIL0

0.2

0.4

0.6

0.8

FIXED ASSETS TURNOVER RATIO

COMPANY NAME

RATI

O

INTERPRETATION:

Fixed Assets Turnover ratio show how many times Assets are turnover in sales, here

KAPS turnover ratio is more than NPCIL which is respectively 0.7 and 0.16 which show high sales

Generation of KAPS by Fixed Assets.

65

5) Working Capital Turnover Ratio:

Net sales

= ---------------------

Net Working Capital

Net working capital= Current Assets – Current Liabilities

KAPS NPCIL0

0.51

1.52

2.53

3.5

WORKING CAPITAL TURNOVER RATIO

COMPANY NAME

RATI

O

INTERPRETATION:

66

Here Working Capital Ratio of KAPS is higher than NPCIL, which is respectively 3.14

and 0.63, which show lower investment in working capital and high sales of KAPS than NPCIL.

6) Debtor’s Turnover Ratio:

Net Credit Sales

= ---------------------------

Avg. Debtors

Opening Debtor + Closing Debtor

Avg. Debtors = --------------------------------------------

2

365

Collection period = ---------------------------

Debtor Turnover Ratio

DEBTOR TURNOVER COLLECTION PERIOD0

10

20

30

40

50

60

DEBTORS TURNOVER RATIO

TIM

ES &

DAY

S

67

INTERPRETATION:

In 2010 Debtors turnover ratio and collection period of KAPS is respectively 8.87 &

41 Days and NPCIL is 6.43 and 57 Days which show the efficient receivable of KAPS.

7) Inventory Turnover Ratio :

Cost of good sold

= -------------------------------------

Avg. Inventory

Cost of good sold = sales – gross profit

Opening Inventory +Closing inventory

= ---------------------------------------------

2

KAPS NPCIL0123456

INVENTORY TURNOVER RATIO

COMPANY NAME

RATI

O

INTERPRETATION:

In KAPS Inventory, turnover ratio was 3.34 and it is 4.79 in NPCIL, which show

fast inventory convert into sales, and more efficiency of inventory management in NPCIL than KAPS.

68

PROFITABILITY RATIO:

It is calculated to measure the overall efficiency of the company. Profit is the ultimate output of the

company, and it will have no future if it fails to make a sufficient profit therefore the financial manager

should continuously evaluate the efficiency of the company in terms of profit.

8) GROSS PROFIT RATIO:

Gross profit

=--------------------------------* 100

Net sales

Gross profit = sales – material cost

KAPS NPCIL32.00%

34.00%

36.00%

38.00%

40.00%

42.00%

GROSS PROFIT RATIO

COMPANY NAME

PERC

ENTA

GE

INTERPRETATION:

In 2012, the gross profit ratio of KAPS is 35.7% and NPCIL is 41%, which show

high Gross profit of NPCIL than KAPS, and we can say the average cost of Electricity Generation of

NPCIL is lower than KAPS…

69

9) EXPENSE RATIO:

Expense

= ---------------- * 100

Net Sales

KAPS NPCIL

-116.00%-115.00%-114.00%-113.00%-112.00%-111.00%-110.00%-109.00%-108.00%-107.00%

EXPENSES RATIO

COMPANY NAME

PERC

ENTA

GE

INTERPRETATION:

In 2012, both the companies have more expenses than sales. Now a days there is

scarcity of uranium in India so the government has distribute uranium on equal bases to all plant in India

for continue run all plants.

10) SALES GENERATION:

Salaries & wages

= -------------------------------* 100

Net sales

70

KAPS NPCIL0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

SALES GENERATION RATIO

COMPANY NAME

PERC

ENTA

GE

INTERPRETATION:

In 2012, sales Generation ratio of KAPS is 30.48% and NPCIL is 21.34%, which show

high salaries & wages expense of KAPS than NPCIL due to closer of first plant of KAPS.

71

CONCLUSION

After completing the training this has come to my view that KAPS is one of the best Atomic power

stations of Nuclear Power Corporation India Ltd. That has been working accurately and significantly.

In my training, I observed keen cooperativeness between the employees. They works together, solves

problem together, make fun together. And I think that this reason why the administration of the plant has

become so powerful and efficient.

After the training, I conclude that the functions of KAPS in finance and account section have more than

normal work.

I believe that in KAPS is never going to be cause of any major accidents in the future because the safety

of the station begins with technical advancements.

Lastly I conclude that, for efficient and accurate working proper management is necessary and the

KAPS deserves it because running such a big plant is not the task but KAPS have done it easy with

proper management application at proper places.

72

ANNEXURE

(Rs. In Lakhs)BALANCE SHEET of NPCILas at March 31, 2012

Schedule

As at

March 31,

2012 (Rs.)

As at

March 31,

2011(Rs.)

1.SOURCES OF FUNDS

1.shareholder’s funds

a)share capital 1 1014533.27 1014533.27

b)Reserves&surplus 2 1284062.60 1249878.17

2.Loan funds

a)secured loans 3 918720.00 656300.00

b)unsecured loans 4 627470.17 745621.61

1546190.17 1401921.61

3.Deferred Tax Liability 184628.67 178665.69

Less:deferred Tax Recoverable 184628.67 0.00 178665.69

TOTAL 3844786.04 3666333.05

II.APPLICATION OF FUNDS

1.Fixed Assets 5 1923057.97 1675855.23

a)Gross Block

Less:Depreciation

Net Block

6

680362.92

1242695.05

604026.88

1071828.35

b)capital Work in progress 7 1611243.65 1735960.55

2853938.70 2807788.90

2.Investments 7 241277.81 273262.64

3.Heavy Water Lease Charges

Recoverable

41209.94 18348.90

4.Current Assets, Loans and advance 8

73

a)Inventories

b)Sundry Debtors

c)Cash and Bank Balances

d)Other Current Assets

e)Loans and Advances

38877.10

50348.96

744913.13

40296.90

58845.37

37813.72

50655.97

515512.65

40102.44

46681.06

933281.46 690765.84

Less:current Liabilities and provisions

a)Liabilities

b)provisions9

180949.71

43972.16

93506.16

30327.07

224921.87 123833.23

Net Current Assets 708359.59 566932.61

“significant Accounting policies &

notes on Accounts”schedules 1 to 16

form integral part of accounts

16

Total 3844786.04 3666333.05

(Rs. In Lakhs)

74

PROFIT & LOSS ACCOUNT

For the year ended March 31, 2012

Schedule For the year

ended

March31,2012

For the year

ended

march

31,201209

INCOME

Sales:

Electricity Energy

Other Income

10

380681.76

67252.97

301055.51

77103.24

Total 447934.73 378158.75

EXPENDITURE

Fuel &Heavy Water

Operation and maintenance

Expenses

Employee’s remuneration and

benefits

Administration and other

expenses

Interest

On bond & term loan

On foreign loans

Less: Transferred to

expenditure during construction

period (sch.6A)

Depreciation

11

12

13

14

48578.27

21645.01

70223.28

26120.25

141767.09

30685.69

66182.99

24270.75

44103.03

72107.60

105503.12

28892.00

64259.45

20325.56

53506.12

26309.53

79815.65

30937.38

48878.27

70608.52

Total Expenditure 379117.15 338466.92

75

Profit For the Year

Prior period Adjustments (Net) 15

68817.58

21411.85

39691.83

(8385.41)

PROFIT BEFORE TAX

Provision for:

Income tax

Current Tax

Earlier Year Tax

Fringe Benefit Tax

Current Tax

Earlier Year Tax

Wealth Tax

Current Tax

Earlier Year Tax

Provision for Deferred Tax

Less: Deferred Tax Recoverable

5706.00

0.00

-

-

42.00

16.40

5962.98

5962.98

5706.00

-

58.40

0.00

47405.73

5764.40

48077.24

3291.36

0.00

3291.36

585.05

23.38

608.43

26.00

23.05

49.05

8399.89

8399.89

PROFIT AFTER TAX

Balance Brought forward from

previous year

Balance available for

appropriations

41641.33

98064.65

139705.98

44128.40

79424.67

123553.07

APPROPRIATIONS:

Interim dividend paid

Tax on interim dividend paid

Proposed Dividend for the year

Tax on proposed Dividend

Transfer to General Reserve

15000.00

2549.25

0.00

0.00

10000.00

10000.00

1699.51

3238.52

550.39

10000.00

76

Balance carried to Balance

sheet

“significant Accounting policies

& notes on accounts”

Schedules 1 to 16 from integral

part of accounts

16

112156.73 98064.65

Total 139705.98 123553.07

EARNING PER SHARE

(EPS) – BASIC & DILUTED,

(FV of Rs.1000 each) (Amount

in Rs.)

41.04 43.50

BIBLIOGRAPHY

77

A. REFERENCE BOOKS:

I.M.PANDEY, FINANCIAL Mgt., EIGHT EDITION AMBRISH GUPTA, FINANCIAL ACCOUNTING FOR Mgt. Company’s Annual Report

B. WEBSITES: www.npcil.nic.in

78